Jocelyn contributes land with a basis of $48,500 and fair market value of $72,750 and inventory...

 

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Jocelyn contributes land with a basis of $48,500 and fair market value of $72,750 and inventory with a basis of $21,400 and fair market value of $32,100 in exchange for 100% of Zion Corporation stock. The land is subject to a $12,125 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange 357(a). As a result, Jocelyn has income of $ tax-free under 351 because the release of a liability and a basis $ treated as boot under in her stock. Jocelyn contributes land with a basis of $48,500 and fair market value of $72,750 and inventory with a basis of $21,400 and fair market value of $32,100 in exchange for 100% of Zion Corporation stock. The land is subject to a $12,125 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange 357(a). As a result, Jocelyn has income of $ tax-free under 351 because the release of a liability and a basis $ treated as boot under in her stock.